PSL-1 is a loose standard quality for line pipe, whereas PSL-2 contains additional testing requirement, stricter chemical physicals, along with different ceiling limits of mechanical properties, and requires Charpy impact testing conditions.
Additional testing requirements under PSL-2 include CVN testing, non-destructive inspection of seamless products, certification to SR15, and mandatory traceability throughout the entire production process. Most FERC, DOT, or FEMSA lines require PSL-2, meaning these types of requirements are a must when supplying pipe for pipelines that are regulated by any of these governing bodies.
PSL-1 pipe will not meet the requirements of PSL2.